"Automatic Fiscal Stabilization" in the Economy Refers to

Multiple Choice

"Automatic fiscal stabilization" in the economy refers to

A) all discretionary fiscal policies.
B) the discretionary fiscal policies that are automatically undertaken by the government when there is an inflationary gap.
C) the discretionary fiscal policies that are automatically undertaken by the government when there is a recessionary gap.
D) the properties of government spending and taxation that cause the simple multiplier to be increased.
E) the properties of government spending and taxation that cause the simple multiplier to be reduced.